California Governor's May Budget Revision Reveals $15.7 Billion Deficit

Governor’s May Budget Revision Reveals $15.7 Billion Deficit, Massive Cuts to Safety Net Programs Proposed

Sacramento, CA—On Monday, Governor Jerry Brown released his revisions to the 2012-2013 California State budget. Unfortunately, the Governor’s budget revealed that California is mired in a $15.7 billion budget deficit. Despite years of severe budget cuts to education, Health and Human Services (HHS), and other state programs—California’s budget remains out of balance as tax revenues dropped below expectations. To address this massive deficit, Governor Brown is proposing significant cuts to Health and Human Services programs including CalWORKs, In-Home Supportive Services (IHSS), Medi-Cal and other safety-net programs that serve vulnerable individuals and families.

Unique to this year’s budget is the emphasis Governor Brown is placing on his ballot initiative that is projected to bring in an extra $8.5 billion in revenues by temporarily raising income tax rates for very high-income Californians and a temporary increase of the state’s sales tax. If Californian voters reject the Governor’s ballot initiative in November, a series of “trigger cuts” to K-12 education and the state’s higher education system will be necessary to balance the budget.

As proposed, the Governor’s budget will further weaken the already struggling infrastructure of California’s safety net. The Governor’s proposed cuts to CalWORKs makes it more difficult for working-class families, who have been hit hardest by the recession, to recover and help rebuild California’s economy. The Governor’s proposal also reduces payments to providers and requires co-payments for all Medi-Cal recipients, which will reduce access to basic care for many families. The proposed budget also significantly reduces support to a wide spectrum of child care services that will be devastating to low-income single-parent families and their children.

What you can do: As this is the Governor’s budget proposal, the California legislature still has an opportunity to make significant changes. Thus, our communities here in California have an opportunity to contact their state legislator and encourage him or her to prioritize safety-net programs during these difficult budget deliberations. You can look up your legislator here.

SEARAC will continue to track the California budget and provide community members with current and relevant information to help preserve Health and Human Services programs. We will continue to inform and encourage policymakers to prioritize state services that provide basic support for low-income and vulnerable communities.